Correlation Between Thermo Fisher and Avricore Health
Can any of the company-specific risk be diversified away by investing in both Thermo Fisher and Avricore Health at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Thermo Fisher and Avricore Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thermo Fisher Scientific and Avricore Health, you can compare the effects of market volatilities on Thermo Fisher and Avricore Health and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Thermo Fisher with a short position of Avricore Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thermo Fisher and Avricore Health.
Diversification Opportunities for Thermo Fisher and Avricore Health
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Thermo and Avricore is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Thermo Fisher Scientific and Avricore Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avricore Health and Thermo Fisher is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Thermo Fisher Scientific are associated (or correlated) with Avricore Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avricore Health has no effect on the direction of Thermo Fisher i.e., Thermo Fisher and Avricore Health go up and down completely randomly.
Pair Corralation between Thermo Fisher and Avricore Health
Considering the 90-day investment horizon Thermo Fisher Scientific is expected to under-perform the Avricore Health. But the stock apears to be less risky and, when comparing its historical volatility, Thermo Fisher Scientific is 11.88 times less risky than Avricore Health. The stock trades about -0.1 of its potential returns per unit of risk. The Avricore Health is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 6.38 in Avricore Health on September 14, 2024 and sell it today you would lose (0.19) from holding Avricore Health or give up 2.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Thermo Fisher Scientific vs. Avricore Health
Performance |
| Timeline |
| Thermo Fisher Scientific |
| Avricore Health |
Thermo Fisher and Avricore Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thermo Fisher and Avricore Health
The main advantage of trading using opposite Thermo Fisher and Avricore Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thermo Fisher position performs unexpectedly, Avricore Health can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Avricore Health will offset losses from the drop in Avricore Health's long position.| Thermo Fisher vs. Agilent Technologies | Thermo Fisher vs. IDEXX Laboratories | Thermo Fisher vs. Illumina | Thermo Fisher vs. Waters |
| Avricore Health vs. Neuronetics | Avricore Health vs. Intelligent Bio Solutions | Avricore Health vs. Biodesix | Avricore Health vs. Precipio |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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